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US markets close at their lows and gold at its high

Cory
April 13, 2017

Doc and I wrap up the markets for this week looking at the breakdown in the US markets and continued move up in gold. This week will be the 5th straight week of gold putting in gains and the lowest weekly close for the S&P since early February.

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Discussion
78 Comments
    Apr 13, 2017 13:39 PM

    (JAG) (JAGGF) Jaguar Mining Produces 22,291 Ounces of #Gold in Q1 2017; Pilar Gold Mine Production Up 86% On Strong Operating Performance
    April 12, 2017 /CNW/

    First Quarter 2017 Highlights

    > Consolidated gold production of 22,291 ounces, up 5% year-over-year, with 214,000 tonnes of ore processed.
    > Strong operating performance at Pilar Gold Mine resulted in an 86% increase in gold production to 8,485 ounces, a 17% improvement in average grade to 3.39 g/t, and higher recovery of 91%. Strong gold production reflects the advancing ore development into the higher-grade Orebodies BF and BFII.
    > Turmalina Gold Mine produced 12,736 ounces of gold, lower than Q1 2016 and Q4 2016 production levels, due to lower throughput and grade. Mining activities in one section of Orebody A were temporarily interrupted during the quarter to conduct ground control rehabilitation work. Previously scheduled high-grade mining blocks from this area were deferred later into the mining schedule.
    > Turmalina increased Measured & Indicated Mineral Resources by 22% to 540,000 ounces of gold (grade of 4.93 g/t Au), and Proven & Probable Mineral Reserves for Orebody C by 167% to 80,000 ounces of gold (grade of 4.10 g/t Au)
    > Growth exploration programs advanced during the quarter with 1,889 metres of diamond drilling being completed from surface and 966 metres from underground. > Over 150 metres of exploration development also advanced during the quarter for new deep drilling horizon platforms at Pilar and Turmalina
    > Preliminary cash balance of approximately $18.1 million as of March 31, 2017, compared to a cash balance of $26.3 million at December 31, 2016.

    https://www.jaguarmining.com/investors/news-releases/2017/jaguar-mining-produces-22-291-ounces-of-gold-in-the-first-quarter-of-2017-pilar-gold-mine-production-up-86-on-strong-operating/

      Apr 13, 2017 13:54 PM

      (PPP) (P) Primero to Resume Operations at San Dimas
      04/13/2017

      “Primero Mining Corp. announced today that it has successfully resolved the work stoppage of unionized employees that began on February 15, 2017. Operations are expected to resume at Primero’s San Dimas mine in Mexico on Tuesday, April 18, 2017.”

      “The Company is also pleased to announce that it has a new Collective Bargaining Agreement with the National Union of Mine, Metal, Steel and Allied Workers of the Mexican Republic. The agreement provides a formal structure for regulating all aspects of the relationship between Company and its unionized employees. The Company considers the new CBA to be both fair and equitable to all parties, and provides Primero with a competitive cost structure aligned to the future success of San Dimas operations.”

      http://www.primeromining.com/English/investors/news/press-release-details/2017/Primero-to-Resume-Operations-at-San-Dimas/default.aspx

        Apr 13, 2017 13:07 PM

        That’s good news!

          Apr 13, 2017 13:34 PM

          Very good news. (PPP)shot up over 15% in the afterhours trading when this news broke to $.65 but settled down just with just over a 10% gain at $.61. Quite a nice pop.

            Apr 13, 2017 13:36 PM

            Here’s the exact figures at the afterhours close:

            Primero Mining Corp (PPP) $0.61 up $0.0569 (10.29% gain)
            After hours: 6:19PM EDT

            Apr 13, 2017 13:12 PM

            My screen shows the last trade at .66 (16.88% gain).

            Apr 13, 2017 13:56 PM

            It’s nice that the news came when the Bollinger bands could hardly get any narrower!

            http://stockcharts.com/h-sc/ui?s=PPP&p=D&yr=0&mn=5&dy=13&id=p65079311386

            Apr 14, 2017 14:15 AM

            Nice. Usually when BBs narrow, an equity is about to break out or break down.

            Thank goodness we got the breakout in afterhours trading. 😉

            Apr 14, 2017 14:50 AM

            Narrower = more stored energy.

    CFS
    Apr 13, 2017 13:50 PM

    Shanghai closed: Gold $1294.75, Silver $19.00

      Apr 13, 2017 13:52 PM

      Nice.

      Apr 13, 2017 13:59 PM

      June Gold finally topped $1290 by $.10 late today.

        Apr 13, 2017 13:02 PM

        Unfortunately GDXJ didn’t get the memo…

          Apr 14, 2017 14:16 AM

          It was getting rebalanced though, and they put a restriction on NUGT & JNUG which affected some of the companies held inside of GDXJ, so we’ll cut it a slight break.

    CFS
    Apr 13, 2017 13:53 PM

    Epstein End of Day TA:
    https://youtu.be/5a3TuGyRXH8?t=32

    Apr 13, 2017 13:10 PM

    Since the beginning of the year I made a guess gold would end 2017 around $1250-1300. It would be higher then last year, but still not at the take off mode. Gold is a currency, and like the fiat currencies it is also managed to some extent in shorter time periods. Geopolitics currently is forcing more treasury bonds to be bought pushing down yields, which is supporting the gold price. Then we have comments from trump re:weaker dollar etc etc… bar WWIII or something serious in syria/korea etc…the geopolitics is just a headwind within the big picture and the gold market as it always does will ignore it once again. Push/pull factors will win out….we have the fed as per jim rickards recent interview looking to increase interest rates next couple of years to around 3% (I think they could reach that without crashing the stockmarket- a small fall isn’t a concern to the fed), we have an indebted economy so deflationary forces still in place coupled with very weak gdp growth in fact a strong USD means imports cheaper so once again deflationary. We have some inflation in Europe etc……but there is talk of QE being reigned in now in Europe, which will affect the southern european economies in particular.

    Gold slowly going higher over a longer time frame still feels to me the current way it will move. The V-Shape which we would all appreciate to make the $$$ with the miners unfortunately still seems too distant for my liking. Only a black swan fat tail event can rip gold upwards.

      CFS
      Apr 13, 2017 13:24 PM

      It is improbable for Gold to be under $1300 by year end, given the War insanity present in the world.
      As the general stock market correct, it is, at first, probable that money would transition to safety…..the bond market….Until inflation picks up.
      When inflation picks up the bond market will collapse and money (especially outside the US) will transition into real things. Precious metal, resources, farm land etc.

    Apr 13, 2017 13:15 PM

    Crypto trading here I come!

    CFS
    Apr 13, 2017 13:41 PM

    Avino Silver produces 604,643 oz AgEq in A1
    2017-04-13 09:03 ET – News Release
    Mr. David Wolfin reports

    AVINO ANNOUNCES Q1 2017 PRODUCTION RESULTS

    Avino Silver & Gold Mines Ltd. has provided its first quarter 2017 production results from its Avino property near Durango, Mexico.

    Consolidated production highlights for first quarter 2017 (compared with first quarter 2016)

    Silver equivalent decreased by 16 per cent to 604,643 ounces*;
    Gold production increased by 23 per cent to 1,837 ounces;
    Silver production decreased by 21 per cent to 320,082 ounces;
    Copper production decreased by 24 per cent to 1,024,853 pounds.

    Apr 13, 2017 13:10 PM
    CFS
    Apr 13, 2017 13:04 PM

    SILVER OPEN INTEREST ON COMEX CLIMBS TO WITHIN 600 CONTRACTS OF A RECORD DESPITE BEING $1.90 OFF WHEN THAT RECORD WAS SET.

    Apr 13, 2017 13:57 PM

    Fundamental analysis, I tend to agree with your logic. That v shaped tear upwards isnt sustainable and probably only rides on the coat tail of that black swan you talked about. Good to see gold and silver close where they did. Although it looks as though silver is meeting some stiff double top resistence in the immediate future.

    Apr 13, 2017 13:21 PM

    The bears were able to stuff GDXJ today and prevent a weekly chart breakout:

    http://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=2&mn=9&dy=0&id=p24452482334&a=517635061

    Apr 13, 2017 13:51 PM

    Compared to gold, silver has some catching up to do with respect to the moving averages. I have no doubt at all that it will catch up but the market has to wake up to the fact that serious stagflation is coming soon.

    http://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=5&mn=6&dy=0&id=p18923645357&a=518191349

    Apr 13, 2017 13:09 PM
      Apr 13, 2017 13:19 PM

      LIBOR is going higher for years to come.

      Apr 14, 2017 14:47 AM

      Oops. Just realized you posted this CFS. Well it’s on here twice then…..

      Cheers!

    Apr 13, 2017 13:24 PM

    I’m a little surprised that KDX took out its April 5th low today but I don’t think this breakdown is anything more than a final shakeout.

    http://stockcharts.com/h-sc/ui?s=KDX.TO&p=D&yr=1&mn=2&dy=0&id=p38512568191&a=517735054

    Apr 14, 2017 14:06 AM

    Here are my inflation model forecasts for March and April USA CPI:
    The weakest model is Oil9. The others are quite consistent, using current oil and gasoline price action combined with EIA forecasts for oil and gasoline:

    Month Oil8 OIl9 Oil10 Gasol11 Gasol12 CPI BLS actual
    Feb’17 2.80 2.75 2.76 2.78 2.81 2.7
    Mar’17 2.62 2.29 2.90 2.46 2.51 TBA
    Apr’17 2.28 2.12 2.40 2.33 2.38 TBA

    March CPI is to be announced any minute now.

    Apr 14, 2017 14:07 AM

    Here are my inflation model forecasts for March and April USA CPI:
    The weakest model is Oil9. The others are quite consistent, using current oil and gasoline price action combined with EIA forecasts for oil and gasoline:

    Month Oil8 OIl9 Oil10 Gasol11 Gasol12 CPI BLS actual
    Feb’17 2.80 2.75 2.76 2.78 2.81 2.7
    Mar’17 2.62 2.29 2.90 2.46 2.51 TBA
    Apr’17 2.28 2.12 2.40 2.33 2.38 TBA

    March CPI is to be announced any minute now.
    http://1000gold.blogspot.com

    Apr 14, 2017 14:09 AM

    Inflation forecast video (I hate doing PowerPoints!):

    https://youtu.be/dd5SeKGaX8M

    Apr 14, 2017 14:08 AM

    The next significant resistance for gold is about $1300…

    http://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=9&dy=0&id=p30169033482&a=509895995

    Apr 14, 2017 14:15 AM

    This is a good time to revisit my reverse symmetry chart for gold:

    http://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=6&mn=2&dy=0&id=p89474313082&a=501128971

    Apr 14, 2017 14:42 AM

    April 13, 2017 – Weekly Wrap-Up with Eric Sprott
    By Craig Hemke – April 13, 2017

    “This week, Eric Sprott discusses how geopolitical events and physical demand are driving gold and silver prices higher.”

    https://www.sprottmoney.com/Blog/april-13-2017-weekly-wrap-up-with-eric-sprott.html

    Apr 14, 2017 14:06 AM

    A Big #Gold Easter Egg
    Super Force #PreciousMetals #Video #TechnicalAnalysis
    Morris Hubbartt – posted Apr 14, 2017

    SF60 Key #Charts & #VIDEO Analysis –
    $SIL #Silver miners ETF $GDXJ daily $GLD daily $AEM Agnico $ABX Barrick $NGD NewGold $SPY (S&P 500 ETF)

    https://superforce60.com/video/2017apr13sf60/2017apr13sf60.html

    Apr 14, 2017 14:27 AM

    Scorpio Gold now has two weekly closes above the 50 week MA:

    http://stockcharts.com/h-sc/ui?s=SGN.V&p=W&yr=2&mn=7&dy=11&id=p10360534274&a=517977690

      Apr 14, 2017 14:43 AM

      SGN is overdue for a little love from the marketplace.

    Apr 14, 2017 14:40 AM

    The next chart screams “sell the stock market and buy gold.”

    http://stockcharts.com/h-sc/ui?s=DIA%3AGLD&p=W&yr=2&mn=7&dy=0&id=p41087102307&a=494251629

    Apr 22, 2017 22:44 AM

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